American_Bankers_Association
CTFA · Question #35
It is a technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax brackets. What is it?
The correct answer is A. Income shifting. See the full explanation below for the reasoning.
Taxation
Question
It is a technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax brackets. What is it?
Options
- AIncome shifting
- BDeductions maximization
- CTax deference
- DTax evasion
How the community answered
(37 responses)- A81% (30)
- B11% (4)
- C5% (2)
- D3% (1)
Topics
#income shifting#tax planning#lower tax brackets#family income
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